Why a Strong Dollar Is Bad News for the Economy

I'm sorry, did someone miss the inflation story? Consumer prices are up 5.6% in the past year. In an economy driven by consumer spending, how can a weak dollar be good news? http://nahnopenotquite.wordpress.com/2008/08/14/inflation-up-in-past-year/

Ironically, he bemoaned oil prices because they were a signal of a weakening economy (nevermind the fact that declining oil prices would strengthen the economy). Now he bemoans a stronger dollar (nevermind the fact that a stronger dollar indicates greater confidence in the US economy vs. other economies). I'm guessing this guy plans on voting for Obama. Only a very liberal Democrat could be this anti-American.

Either way. Bad and good for the economy. In terms of exoprt we have a advantage of low price of our product.Which means they will buy more of our product.However in import we can buy less you due the low dollar.In term of Tourism it is the same.More tourist will flood our market because of low dollar.Strong dollar will be the reverse. Which way we go. Let the market dictates which is favorable to us. Remember strong dollar we can buy more abroad specially oil and commodities. Ask the monetary policy opinion not me.

Strong Dollar bad for export.Weak dolar good for export.Strong dollar good for import bad for export..........wE ARE IN TROUBLE NOT BECAUSE OF STRONG DOLLAR OR WEAK DOLAR BUT BECAUSE OF OUR FINANCIAL MIS-MANAGEMENT. THE QUETION NOW IS WHAT IS THE BEST SOLUTION....WHAT IS THE BEST POLICY TO THE PROBLEM.......IF ALL BLAME AND MOUTH.....STILL NOTHING WILL HAPPEN....WE NEED ACTION........NO POLITICS PLEASE.

Some people whine about anything they possibly can...especially if it gives them "air time"

Incidentally, I wonder how the Dollar "strengthened" while the Fed was still busy inflating the money supply. It is tough to accept that with a rock bottom targeted rate at 2%, the Fed is not inflating the money supply. Any facts, anyone?? In any case, if the Dollar is "strengthening" because other Central Banks are inflating their respective currencies faster than the Fed is inflating the Dollar, I wonder how that is good news. It only means that other countries will face greater rates of price rise than the US. The purchasing power of the Dollar still plummets as long as the Fed keeps the printing presses fully cranked up and generates "money" out of thin air. Anyone care to explain?

Incidentally, I wonder how the Dollar "strengthened" while the Fed was still busy inflating the money supply. It is tough to accept that with a rock bottom targeted rate at 2%, the Fed is not inflating the money supply. Any facts, anyone?? In any case, if the Dollar is "strengthening" because other Central Banks are inflating their respective currencies faster than the Fed is inflating the Dollar, I wonder how that is good news. It only means that other countries will face greater rates of price rise than the US. The purchasing power of the Dollar still plummets as long as the Fed keeps the printing presses fully cranked up and generates "money" out of thin air. Anyone care to explain?

A strong dollar is good for US exporters. It is bad for those who have to buy stuff from abroad. The current dollar rally is a manipulation, it won't last, so don't sweat it.

Based on my tracking last 30 years US dollar impacxt on corproate profir, oil, commodities, price inflation and strong dollar did help to drag oil ad commodity price down in recent price correction and cool off the inflation, and short term boost stock iindices, confidence, price, (, but it will shown later to cut US export competitivenee, 2 month later, cut inot multinational companies profit margin in foreign investment, EURO and Japan has suffered badly by their strong currency. But do not worry, Dollar will be self regulated by economic, slowdown, soaring trade deficit duew to export decline, stock price plunge due to decling sales, profits ( especially in hightech like IBM details on www.osawh.com/currency.html www.osawh.com/Globaloiln.htm www.osawh.com/Fedcrisab.htm www.osawh.com/SP500.html www.osawh.com/prodo2.html www.osawh.com/fund2008.htm

A weaker dollar is as bad as a stronger dollar. The basic problem is that we have worthless currency like the dolar, the pound et al masquerading as money. The sooner this con game ends and we get back to the Gold Standard, the better. Until then, brace yourself for more recessions, depressions, cycles, etc. In fact, recessions, depressions and economic cycles are problems created solely by the monopoly of Central Banks over the creation of worthless fiat money with which they fool and rob people. No such events are possible under a pure Gold Standard. Doubters are requested to read "The Mystery of Banking" by Murray N Rothbard.

The United States will last as long as our plant "life" will.

If these seers had just one teeny-tiny shred of sense. Thank gawd that no one reads past the headlines, anyway.

how is a weak dollar bad for the economy, isnt it cause its getting weaker than we are in a economy jam?

stronger dollar? sure it is up, er down from the euro from 1.60 to 1.49 geeee when the dollar was rising to 1.49 that was bad now that it has fallen to 1.49 that is ok... these so called experts are idiots!

doofus like this is actually good for market, I don't know how he earn the spot to show his face in the video, but it's the video like this that drives the market up and down, and it's the movemnts that we need to make money :-)

Seriously, the only thing dumber than a weak dollar being good is blaming democrats for the problem. You know what else hurts the economy? High deficits. This amount of stupidity is maddening. At the rate we're going there won't be a dollar to worry about, it'll all be in yuan.

Now I remember where I saw that guy. He was wandering along 42nd St. wearing an aluminum foil hat and babbling to an invisible buddy. Poor Sarah is left behind while Aaron and Henry are off traveling.

HOLD ONTO YOUR SEAT IF YOUR IN USA. THE NEXT YEAR WILL SEE A NEW PRES.// NEW WASHINGTON LOBBYIST BLOOD SUCKERS, FEDERAL EXPENDITURES OUT OF CONTROL,// MORE PEOPLE OUT OF WORK,// WILD FOOD PRICES,/ MORE SOUP KITCHENS,/ LESS SPENDING MONEY IN YOUR POCKETS. BUT THE WEALTHY WILL CONTINUE TO SPEND AND TRAVEL ABROAD. AS MOST WORLD COUNTRIES SLOW DOWN , THE POSSIBLITY OF WORLD ECONOMIC DEPRESSION GROWS AS THEY ALL USE THE SIMILAR PACKAGES FOR RECOVERY WHICH ARE UNLIKELY TO SUCCEED. THE PRICE FOR GLOBAL ECONOMIES.

Moronic at the most basic level. The value of the dollar determines what Americans can buy, thus to some extent the standard of living in America. The standard of living has been stagnant or falling for a generation now as Wall Street and the Globalization crowd loot this nation. Pity, this was a great country once.

I agree with the Kruschev quote, except I wouldn't say gullible, I think complacent would be a better term, complacent to the point we become apathetic to the whole process. Point is, if you want to play the politics card, nobody on the Hill cares one way or the other about you unless your part of the contributing constituency. They are lifetime politicians with no term limits and they are there to stay. Don't believe me, then read up on the poll from last month that asked about the approval rating of Congress. Congress received an approval rating in the single digits while the Congressmen and Senators that were from the pollster's home state were given marks well above 60% approval. They have us pointing the finger and arguing with each other while they sit back and cash in. Here's an idea, let's vote 'No Incumbents' in 2008, and let's elect some newcomers that embrace the 'change' of term limits for Representatives and Senators. I personally find it appalling that we argue and bicker about ages and names of candidates when we should be arguing about what we all come to this website forum for: finances. Neither one of these two have ever run a business and we expect them to take over the biggest business on the planet? Does anyone else find this unnerving or am I just too fed up to see straight?